Technology

Top 5 Accounting Software for Small Businesses

 

Small businesses constitute the backbone of the United States’ entrepreneurial landscape. With a staggering 33.2 million such enterprises, they play a vital role in the nation’s economy. However, even the smallest of businesses require efficient bookkeeping solutions. While larger companies can afford dedicated accountants, many smaller enterprises lack this luxury. Resorting to manual tracking with spreadsheets or, worse, pen and paper, is not only time-consuming but prone to errors. Fortunately, the internet offers a plethora of accounting software options tailored to the needs and budgets of small businesses.

1. FreshBooks: Streamlined Accounting for All

FreshBooks is a standout choice for small-business owners, even if they lack an accounting background. This user-friendly software enables users to effortlessly track expenses, create and send invoices, access insightful reports, and process credit card payments—all with just a few clicks. The convenience extends to its iOS and Android apps, ensuring accessibility on the go.

 

FreshBooks offers several membership tiers to accommodate different business sizes and budgets. The Lite tier, priced at $19 per month, suits those with five or fewer billable clients. Larger businesses can explore the Plus and Premium tiers, supporting more clients at $32 and $60 per month, respectively. Additionally, FreshBooks offers custom accounting solutions with pricing that scales with your business’s needs.

2. Intuit Quickbooks: The Trusted Household Name

Quickbooks, offered by the renowned Intuit, is a trusted choice for millions of small and medium businesses worldwide. It’s beginner-friendly and favored by professional accountants. This cloud-based software offers scalability and seamless integration with various third-party applications.

 

You can test Quickbooks for free for 30 days, and its entry-level tier starts at just $15 per month for the first three months, increasing to $30 per month thereafter. While additional users or payroll features may require an upgrade, its intuitive user interface and comprehensive feature set make it an attractive choice for most small businesses.

3. Wave: Quality Accounting at No Cost

You don’t need to break the bank to access top-tier accounting software. In fact, you can get it for free with Wave. Wave allows small businesses to create and send invoices, track unlimited income and expenses, and more—all at no cost, whether online or via their mobile app.

While many features are free, Wave charges for payment processing per transaction and levies a monthly fee for payroll services based on the number of payees. It’s an excellent option for those on tight budgets, offering a risk-free opportunity to try it out.

 

4. Zoho Books: Affordable and Feature-Rich

For those who prefer an alternative to Wave, Zoho Books offers a compelling solution. They provide a free version for businesses generating less than $50,000 per year in revenue, including invoicing, expense and mileage tracking, and more. The free plan allows up to 1,000 invoices annually, which may suffice depending on your company’s size.

Zoho Books seamlessly integrates with numerous popular apps and provides support via phone, email, and chat. Paid plans start as low as $15 a month, with advanced enterprise services available in their Premium, Elite, and Ultimate tiers. You can test the free version or enjoy a 14-day trial of a paid tier through the Zoho Books website.

 

5. Xero: Popular and Collaborative Accounting

Xero is a popular choice for small businesses nationwide. It automates report generation and invoice creation, encourages collaboration through comments, and supports integration with over 1,000 third-party apps.

Xero offers three plans: Early, Growing, and Established, starting at $13 per month and reaching up to $70 per month. For payroll needs, you can seamlessly integrate Gusto software for an additional $40.

Conclusion

Investing time and resources in learning and using accounting software is a wise decision for any small business. Well-organized accounts receivable and payable come tax time provide peace of mind today and can save you from headaches in the future.

Thankfully, accounting software is both affordable and surprisingly easy to use. As your business grows, you may consider switching to more advanced programs, hiring an accountant, or exploring enterprise-level solutions. However, for now, the five accounting software options outlined above should capably meet the needs of your small business.

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